Dell in China

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Introduction
PC Limted was the first name given to this innovative company that took the world. Later to be known as Dell Computers Corporation and now Dell Inc., this company was founded by this, college dropout , Michael Dell in the early 1980’s who started out upgrading hard drives for IBM compatibles. A year of computer upgrades for local businesses the company had grown to a $6 million business, at the end of 1985 Dell started offering custom built-to-order machines which caused the company to explode with $70 million in sales. Within five years Dells’ total sales had grown to an unbelievable $500 million and became nationally known as a supplier of stat of the art desktop and PCs. Dell continued to achieve phenomenal records in sales and profit growth, eventually making it the most successful company in the PC industry, surpassing $25 billion in 2000. 1984 in Beijing, China, the development of Lenovo as a New Technology Development Company (NTD Co) of the Institute of Computing Technology of the Chinese Academy of Science, was established to generate a income for the IT market to help its major shortfall in its government budget allocations. The companys first innovative product was a Chinese language add-on card which gained the company a 50 percent market share. Lenovo soon expanded to Hong Kong to overcome its inexperience in the IT industry and in 1988 became Legend Computer Group Company. In the early 90’s Legend was the largest among the domestic PC makers in China, then in 1992 tariffs on imported PCs were reduced and import quotas were eliminated, allowing foreign companies like Dell to have a price advantage over Legend.

In 1995 Dell China opened its market doors for Dell to enter via exports, since its entry into this lucrative market Dell has produced their product at low labor cost and a fertile marketplace. This transition was so successful that Dell has made China a base of operations for many offices and manufacturing plants. Some of...
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